The Davis-Bacon Act, for subcontractors

What the Davis-Bacon Act requires

Every federal contract over $2,000 for construction, alteration or repair, "including painting and decorating, of public buildings and public works" must state the minimum wages for each class of laborers and mechanics, based on what DOL determines is prevailing in the area [40 U.S.C. 3142]. Contractors and subcontractors must pay "all mechanics and laborers employed directly on the site of the work, unconditionally and at least once a week," without later deductions or kickbacks, and post the wage rates at the site.

The minimum wage under the act has two parts: a basic hourly rate and a fringe benefit rate. You can meet the fringe part by paying into bona fide plans, by paying cash, or both (see fringe benefits, with the math). Proof of payment is the weekly certified payroll.

In its 2023 rulemaking, DOL estimated that the act and its Related Acts apply to about $217 billion a year in federal and federally assisted construction and set minimum wages for about 1.2 million construction workers [88 FR 57526].

Who and what it covers

• Direct federal contracts over $2,000 for construction, alteration or repair.
• Davis-Bacon Related Acts: federally assisted construction under dozens of other statutes (grants, loans, loan guarantees, insurance), for example highway funding under 23 U.S.C. 113, public housing, Clean Water Act projects and Infrastructure Investment and Jobs Act programs. DOL keeps the list on its government contracts page.
• Laborers and mechanics: workers whose duties are manual or physical. Forepersons who spend more than 20 percent of a workweek doing laborer or mechanic work are covered for that time [29 CFR 5.2].
• On the site of the work, which includes certain secondary sites and nearby dedicated support sites such as batch plants [29 CFR 5.2].

Wage determinations

A general wage determination lists the prevailing basic rate and fringe rate for each classification, for a construction type in a given area [29 CFR 1.5]. They are published on SAM.gov, carry no expiration date, and are updated by numbered modifications. The four construction types (from DOL's All Agency Memorandum 130) are:

Source: DOL All Agency Memorandum 130. Agencies apply more than one WD when the other category of work exceeds $3.3 million or 20 percent of total project cost [AAM 251].

Which WD applies: the one in your contract. For sealed bids, a modification published at least 10 days before bid opening applies; after award, later modifications generally do not change the contract [29 CFR 1.6(c)]. If your work needs a classification the WD does not list, the agency requests a conformance from DOL.

Look up yours with the WD lookup or browse rates by state and county.

Overtime

On contracts over $100,000, the Contract Work Hours and Safety Standards Act requires "not less than one and one-half times the basic rate of pay, for all hours worked in excess of 40 hours in the workweek" [40 U.S.C. 3702]. Fringe benefits, including cash in lieu of fringe, are left out of the overtime math [29 CFR 5.32]. Violations carry liquidated damages of $33 per worker for each day overtime was not paid [29 CFR 5.8]; DOL made no inflation adjustment for 2026 [91 FR 31358].

Apprentices and helpers

Only apprentices individually registered in a program registered with DOL's Office of Apprenticeship or a recognized State Apprenticeship Agency may be paid less than the WD rate, at the program's percentage of the journeyworker rate. They get fringe benefits as the program says; if the program is silent, the full WD fringe. Anyone paid as an apprentice who is not registered, or who is over the allowed ratio, must be paid the full WD rate for the work done [29 CFR 5.5(a)(4)].

A helper rate can be paid only where the WD lists a helper classification or one is added through a conformance request. Since the 2023 rule, informal trainees are paid the full prevailing wage; the only remaining exception is FHWA-certified trainees on federal-aid highway projects.

The 2023 rule and the 2026 court rulings

DOL's final rule "Updating the Davis-Bacon and Related Acts Regulations" took effect October 23, 2023, and generally applies to contracts entered into after that date [88 FR 57526]. The changes that matter most to a sub:

• Prevailing rates: a rate paid to at least 30 percent of workers can again be the prevailing rate, and non-union rates can be updated periodically using the Employment Cost Index.
• Records: payroll records must include each worker's phone and email, and hours worked in total and on each covered contract. Certified payrolls are kept 3 years after completion; electronic signatures are allowed.
• Prime responsibility: the prime is responsible for its subs' compliance and liable for their workers' back wages.
• Cross-withholding across agencies and contracts, and anti-retaliation protections for workers.
• Fringe: annualization of plan contributions is written into the rule, and contractors' own administrative costs are not creditable.

What a court threw out. On June 24, 2026, the federal court in the Northern District of Texas vacated three parts of the rule nationwide: the provision covering truck drivers' on-site activities tied to offsite transportation, the provision on material suppliers that also do construction at the site, and the "operation of law" provision that read missing clauses into contracts [AGC v. DOL, final judgment]. The government did not oppose the judgment and dropped its appeal.

What is still being argued. A second case in the Eastern District of Texas challenges other parts, including the 30-percent rule, fringe annualization and the unfunded-plan approval rule. Those parts remain in effect while it is pending, and DOL told the court in August 2026 it does not plan more rulemaking on them for now [ABC v. Sonderling, status report].

Executive order minimum wages

EO 14026 (the $15 federal contractor minimum, $17.75 in 2025) was revoked on March 14, 2025 [EO 14236], and DOL is no longer enforcing it [DOL]. Current wage determinations no longer carry the EO 14026 note.

EO 13658 still applies to Davis-Bacon contracts awarded from January 1, 2015 to January 29, 2022 and not renewed or extended since; its minimum is $13.65 an hour from May 11, 2026 [91 FR 5783].

Penalties and enforcement

• Back wages with interest, compounded daily at the IRS underpayment rate [29 CFR 5.10].
• Withholding from contract payments, including cross-withholding from other federal or federally assisted contracts with the same prime [29 CFR 5.9].
• Debarment for 3 years for contractors who disregard their obligations to workers or subcontractors [29 CFR 5.12] [40 U.S.C. 3144].
• False certified payrolls can be prosecuted under 18 U.S.C. 1001 (up to 5 years in prison) and the False Claims Act [29 CFR 5.5(a)(3)(ii)(F)].